Decode Corporate Travel Terminology: Essential Terms & Definitions

Corporate travel is an integral part of modern business, facilitating collaboration, client meetings, and professional development. However, navigating the complex world of corporate travel can be daunting, especially for those new to the field. One essential tool to streamline the process and ensure a smooth travel experience is a comprehensive understanding of the corporate travel glossary.

A corporate travel glossary serves as a valuable resource, defining key terms and concepts that are frequently encountered in the business travel industry. Familiarizing oneself with this terminology cna help travelers communicate effectively with travel agents, book flights and accommodations more efficiently, and understand the nuances of travel policies and regulations.

Moreover, a grasp of corporate travel terminology can help individuals make informed decisions regarding travel arrangements, optimize their itineraries, and minimize unexpected expenses. Whether you're a seasoned traveler or just embarking on your first corporate trip, a solid understanding of the corporate travel glossary will empower you to navigate the landscape with confidence and efficiency.

In the subsequent sections, we will delve into some of the most important terms and concepts that are essential for anyone involved in corporate travel. By the end of this blog post, we will have a strong foundation of knowledge to guide you through your business travel endeavors.

WegoPro presents a comprehensive list of over 500 corporate travel terms to assist you in your corporate travel endeavors. This invaluable resource will empower you to communicate effectively, make informed decisions, and navigate the complexities of business travel with confidence.

Business Travel Glossary - A

AAB (Agent-Assisted Bookings)

Bookings made through a travel agent, offering personalized assistance and expertise.

Accounts Payable

The financial department responsible for processing and paying invoices for goods and services.

Adoption Rate

The percentage of employees who adopt and use a new corporate travel tool or policy.

ADR (Average Daily Rate)

The average price paid for a hotel room per night.

Advance Purchase Excursion (APEX) Fare

A discounted airfare that requires booking a certain number of days in advance.

Advance Purchase Policy

A company policy that mandates booking flights a specific number of days before travel.

Air Miles

Rewards points earned by frequent travelers that can be redeemed for flights, upgrades, or other travel-related benefits.

Airfare

The price of an airline ticket.

Airfare Price Tracking

Monitoring and analyzing changes in airfare prices over time.

Airline Alliances

Partnerships between multiple airlines that offer shared benefits, such as frequent flyer program integration and code-sharing agreements.

Airline Joint Venture

A commercial partnership between two or more airlines, often involving joint marketing, codesharing, and revenue sharing.

Airline Policy

A set of rules and guidelines established by an airline to govern its operations, including ticketing, baggage, and passenger rights.

Airline Regulations

Government-imposed rules and standards that airlines must adhere to, such as safety regulations and pricing restrictions.

Airline RFP (Airline Request for Proposal)

A document issued by a company seeking bids from airlines for travel services.

Airline Tickets

Documents that confirm a passenger's reservation on a flight.

Airlines Reservation System (ARS)

A computerized system used by airlines to manage flight reservations, ticketing, and inventory.

Airport Access Fee

A charge imposed by an airport on airlines for using its facilities.

Airport Code

A three-letter code assigned to each airport by the International Air Transport Association (IATA).

Ancillaries

Additional products or services offered by airlines, such as baggage fees, seat selection, and in-flight meals.

Approval Workflow

The process by which travel requests are reviewed and approved within a company.

ARC (Airline Reporting Corporation)

A settlement company that processes payments between airlines and travel agencies.

Artificial Intelligence (AI)

Technology that enables computers to perform tasks that typically require human intelligence, such as natural language processing and machine learning.   

ATP (Air Transport Association)

A trade association representing the interests of U.S. and Canadian airlines.

Auditing

The process of examining financial records and transactions to ensure accuracy and compliance with regulations.

Automated Expense Reporting

Software that streamlines the process of submitting and processing expense reports.

Aviation Regulator

A government agency responsible for overseeing and regulating the aviation industry.

Business Travel Glossary - B

Baggage Allowance

The maximum amount of luggage a passenger is permitted to carry on a flight without additional charges.

Balance Sheet

A financial statement that shows a company's assets, liabilities, and equity at a specific point in time.

Best Available Rate (BAR)

The lowest room rate offered by a hotel at any given time, excluding any special discounts or promotions.

Basic Economy

A lower-cost airfare option that often includes restrictions on baggage, seat selection, and changes.

Billback

The process of charging a company or department for travel expenses incurred by its employees.

Blackout Dates

Periods when hotel rooms or flights are not available for booking due to high demand or special events.

Bleisure

A combination of business and leisure travel, where travelers extend their business trips to explore a destination for personal enjoyment.

Blended Travel

A mix of traditional business travel and virtual meetings or remote work.

Booking Engine

A software application that allows travelers to search for and book flights, hotels, and other travel services online.

Boutique Hotels

Smaller, independently owned hotels that offer unique accommodations and personalized service.

Business Class

A higher-priced airline cabin class that offers amenities such as wider seats, more legroom, and complimentary meals and beverages.

Business Continuity

The ability of a company to continue its operations despite disruptions such as natural disasters, emergencies, or travel restrictions.

Business Expenses

Costs incurred by employees while traveling on business, such as transportation, accommodations, meals, and entertainment.

Business Travel Enterprise Resource Planning (ERP)

A software system that integrates various business functions, including travel management, expense reporting, and compliance.

Business Travel

Travel undertaken by employees for work-related purposes, such as attending meetings, conferences, or client visits.

Business Travel Program

A set of policies, procedures, and tools used by a company to manage its business travel activities.

Business Trip

A journey undertaken by an employee for work-related purposes, often involving overnight stays.

Business Travel Glossary - C

Cabin Class Compliance

Adherence to a company's policy regarding the specific cabin class (e.g., economy, premium economy, business, first) that employees can book for their business travel.

Capital Expense (CapEx)

Expenditures made by a company to acquire or improve long-term assets, such as property, equipment, or technology.

Capitalization

The process of recording a significant expense as an asset on a company's balance sheet rather than as an expense in the current period.

Car Allowance

A fixed amount of money provided to employees for transportation expenses, often used when renting cars or using personal vehicles for business purposes.

Car Rental Agreement

A legal document that outlines the terms and conditions of a car rental, including rental fees, insurance coverage, and damage liability.

Carbon Emissions

The release of carbon dioxide into the atmosphere, primarily caused by the burning of fossil fuels.

Carbon Footprint

The total amount of greenhouse gases emitted by an individual, organization, or activity.

Card Security Code (CSC), Card Verification Code (CVC), or Card Verification Value (CVV)

A three- or four-digit code printed on the back of a credit or debit card used for online transactions to verify card authenticity.

Cash Basis Accounting

A method of accounting that recognizes revenue and expenses when cash is received or paid out.

Categorization

The process of classifying travel expenses into specific categories, such as transportation, accommodations, meals, and entertainment.

CDF

Customer Data Fields, a standardized set of data elements used to capture information about travelers and their preferences.

Centralized Billing

A process where a single entity, such as a travel management company (TMC), handles all billing and invoicing for corporate travel expenses.

Chain Discount

A discount offered by hotel chains for multiple bookings or extended stays.

Change Management

The process of planning, implementing, and managing organizational change, such as implementing new travel policies or technologies.

Charting in Rail Travel

The process of reserving seats on a train.

City Pairs

The combination of two cities between which flights or train services are available.

Class of Service (COS)

The level of comfort and amenities offered on a flight or train, such as economy, premium economy, business, or first class.

CLEAR Biometric Identity Verification

A technology that uses fingerprint and facial recognition to expedite airport security screening.

CNR

Confirmation Number, a unique reference number assigned to a flight or train reservation.

CO2e

Carbon dioxide equivalent, a unit of measurement used to compare the greenhouse gas emissions of different gases.

Codeshare

An arrangement where two or more airlines market and sell flights on each other's networks, using their own flight numbers.

Computer Reservation System (CRS)

A software system used by travel agents to access airline, hotel, and car rental inventory and make bookings.

Connecting Flight

A flight that requires a transfer to another flight to reach the final destination.

Consortia Rate

A negotiated rate offered to corporate travelers who are members of a specific travel management consortium.

Content

Information and resources related to travel, such as destination guides, reviews, and travel tips.

Continuous Pricing

A pricing model where airfares are dynamically adjusted based on factors such as demand, time of booking, and route.

Corporate Card

A credit card issued to employees for business travel expenses, often with features like expense tracking and travel insurance.

Corporate Negotiated Rates

Discounted rates negotiated by companies with airlines, hotels, and car rental companies.

Corporate Travel Policy

A set of guidelines and rules that govern a company's business travel activities, including expense limits, booking procedures, and travel approvals.

Corporate Travel Program

A comprehensive plan designed to manage and optimize a company's business travel activities, including policy development, travel management, and expense reporting.

COS

Class of Service, the level of comfort and amenities offered on a flight or train.

Cost Control

Measures taken to reduce travel expenses, such as implementing travel policies, negotiating rates, and using cost-saving tools.

Credit Card Authorization (CCA)

The process of verifying the validity of a credit card before charging a transaction.

Cross-Platform Search

The ability to search for travel options across multiple platforms, such as airline websites, online travel agencies (OTAs), and travel management companies (TMCs).

Customer Channels

The various ways in which travelers interact with a company, such as online, by phone, or in person.

Customer Data Fields (CDFs)

A standardized set of data elements used to capture information about travelers and their preferences.

Business Travel Glossary - D

Data Integration

The process of combining data from multiple sources, such as travel booking systems, expense management tools, and corporate directories, into a unified database.

Deadhead

A flight segment with no passengers, often used to reposition aircraft or crew between destinations.

Depreciation

The allocation of the cost of a long-term asset over its useful life, reflecting the decrease in its value over time.

Designated Booker

An individual or department within a company authorized to make travel bookings on behalf of employees.

Direct Cost

Expenses directly related to a specific travel activity, such as airfare, hotel accommodations, and ground transportation.

Direct Flight

A flight that travels directly from the origin to the destination without any intermediate stops.

Distribution Platforms

Online platforms, such as global distribution systems (GDS) and online travel agencies (OTAs), that provide access to travel inventory and booking services.

Dunning

The process of sending reminders or notices to travelers or suppliers to pay outstanding invoices.

Duplicate Expense Detection

The use of software or manual processes to identify and prevent duplicate expense claims.

Duty of Care

A legal obligation for employers to take reasonable steps to protect the health, safety, and well-being of their employees, including while traveling.

Dynamic Pricing

A pricing model where prices are adjusted in real-time based on factors such as demand, time of booking, and availability.

Business Travel Glossary - E

Electronic Data Interchange for Administration, Commerce and Transport (EDIFACT)

A standard format for electronic communication between businesses, used for exchanging travel-related data such as bookings, invoices, and payment information.   

Electronic Funds Transfer (EFT)

A method of transferring money electronically between bank accounts, often used for corporate travel payments.

Electronic System for Travel Authorization (ESTA)

A visa waiver program that allows eligible citizens of certain countries to visit the United States for business or tourism for up to 90 days without a visa.

Enhancing Corporate Travel Policies for Efficiency and Compliance

The process of reviewing and updating a company's travel policies to ensure they are effective, efficient, and compliant with regulations.

ERP

Enterprise Resource Planning, a software system that integrates various business functions, including travel management, expense reporting, and compliance.

ESTA

Electronic System for Travel Authorization, a visa waiver program for eligible travelers visiting the United States.

Expense Automation

The use of technology to streamline and simplify the expense management process, reducing manual effort and improving accuracy.

Expense Forecasting

The process of predicting future travel expenses based on historical data and trends enables companies to better allocate budgets and manage costs.

Expense Fraud

The intentional misrepresentation or manipulation of travel expenses for personal gain, such as claiming reimbursement for non-business expenses or inflating costs.

Expense Management Software

A technology solution that helps companies manage and process employee expense claims, often including features like expense tracking, policy enforcement, and reporting.

Expense Policies

Guidelines are established by companies to define acceptable expenses and reimbursement procedures, ensuring consistency and compliance.

Expense Reimbursement

The process of compensating employees for out-of-pocket expenses incurred on behalf of the company, typically based on approved expense reports.

Expense Report

A document that summarizes an employee's travel expenses over a specific period, including details such as dates, locations, costs, and supporting documentation.

Expense Report Software

A technology tool that automates the process of creating, submitting, and approving expense reports, often integrating with other systems like corporate cards and travel booking platforms.

Business Travel Glossary - F

Fair Basis Code

A code used by airlines to identify a specific fare type and its associated rules, such as restrictions, penalties, and eligibility.

Fair Market Price

The price at which a product or service would be sold in an open market under normal conditions.

Fintech

The use of technology to improve financial services, including areas like payments, lending, and investment.

First Class

The most luxurious and expensive cabin class on an airline, offering superior amenities, spacious seating, and enhanced services.

Fiscal Year

A 12-month accounting period that may or may not align with the calendar year.

Fixed-Rate Negotiation

The process of negotiating a fixed hotel rate with specific terms and conditions that remain in place for a specified period.

Flag Carrier

An airline designated as a national carrier by a government often receives preferential treatment or support.

FoP

Form of payment refers to the method used to pay for travel expenses, such as corporate credit cards, personal cards, or direct billing.

Foreign Currency Exchange

The process of converting one currency into another to facilitate international transactions.

Frequent Flyer Miles

Rewards points earned by frequent travelers for flying with a specific airline, which can be redeemed for flights, upgrades, or other benefits.

Frequent Flyer Number

A unique identifier assigned to a traveler by an airline's loyalty program.

Frequent Flyer Program

A loyalty program that rewards customers for their repeat business with airlines, offering incentives like miles, upgrades, and other perks.

Fringe Benefits

Additional benefits offered to employees beyond their base salary, such as health insurance, retirement plans, and paid time off.

Full-Service Hotel

A hotel that offers a wide range of amenities and services, including on-site restaurants, room service, and meeting facilities.

Business Travel Glossary - G

GDS

Global Distribution System, a network that connects travel suppliers (airlines, hotels, car rentals) with travel agencies and online booking platforms.

Global Entry

A U.S. Customs and Border Protection program that allows pre-approved travelers to expedite their entry into the United States.

Global Travel Agency

A travel agency with a worldwide network and the ability to handle international travel arrangements.

Ground Transportation

Options for transportation within a destination, such as taxis, ride-sharing services, rental cars, or public transit.

Guest Travel

Travel arranged for individuals other than employees, such as clients or family members.

Business Travel Glossary - H

Hotel Bill-Back

The process of charging a company or department for hotel expenses incurred by its employees.

Hotel Chains

Groups of hotels that operate under the same brand and often share common management and reservation systems.

Hotel Prepayment

The practice of paying for a hotel room in advance which is often required for certain bookings or room types.

Hotel Program

A company's negotiated rates and terms with hotels, often including preferred properties and amenities.

Hotel Rack Rate

The published rate for a hotel room which may be higher than negotiated corporate rates.

Hub

A city where an airline has a major presence, often with multiple flights and connections.

Hush Trip

A business trip that is not disclosed to or approved by an employer.

Business Travel Glossary - I

IATA

International Air Transport Association, is an organization representing the interests of airlines worldwide.

IATAN

International Airline Travel Agent Network, is an organization that provides accreditation and support for travel agents.

IFE

In-flight entertainment, such as movies, music, and games offered on airplanes.

In-flight Entertainment

The entertainment options provided to passengers on airplanes including movies, TV shows, music, and games.

Incidental Expenses

Small, miscellaneous expenses incurred during travel, such as tips, laundry, or minibar charges.

Independent Hotels

Hotels that are not affiliated with a chain or brand.

Indirect Costs

Expenses that support overall business operations but are not directly attributable to specific travel activities.

Intercontinental Travel

Travel between continents.

Intercontinental Traveler

A traveler who travels between continents.

Interline Connection

A flight connection between two airlines that are part of an interline agreement.

Interline

An agreement between airlines that allows passengers to check in for connecting flights with different airlines.

International Business Traveler

A traveler who conducts business activities in foreign countries.

International Driver's License

A document that allows a traveler to drive in foreign countries.

Invoice Matching

The process of verifying that invoices from suppliers match purchase orders and received goods or services.

IROPs

Irregular Operations referring to disruptions or delays in flight schedules.

Irregular Operations

Unexpected events that disrupt flight schedules, such as weather delays, mechanical issues, or air traffic control disruptions.

Itemized Receipt

A receipt that lists each item purchased and its corresponding price.

Business Travel Glossary - J

Journal Entry

A record of a financial transaction, including the accounts affected and the amounts involved.

Business Travel Glossary - K

Known Traveler Number (KTN)

A unique identifier used to expedite security screening for pre-approved travelers.

Business Travel Glossary - L

Land Arrangements

Ground transportation and accommodations booked for a trip.

Last Room Availability (LRA)

A guarantee that a hotel will provide a room even during peak periods.

Layover

A brief stop between connecting flights.

LCC

Low-cost carrier, an airline that offers low fares with limited services.

LDW

Loss damage waiver, optional insurance coverage for car rentals that cover theft or damage.

Leakage

When employees book travel outside of a company's preferred channels, potentially leads to higher costs and reduced compliance.

Lease accounting

The accounting treatment of leased assets and liabilities.

Leisure travel

Travel for personal enjoyment or relaxation.

Liability

Legal responsibility for damages or losses.

Limited-Service Hotel

A hotel that offers basic amenities and services, such as rooms and limited housekeeping.

Liquidation

The process of closing a business and selling its assets.

Lodge Card

A corporate credit card, used for travel expenses.

Lowest Logical Fare (LLF)

The lowest fare available for a specific flight, based on various factors.

Loyalty Program

A rewards program that offers incentives to repeat customers.

Business Travel Glossary - M

Machine Learning

A subset of artificial intelligence that allows systems to learn and improve from experience without being explicitly programmed. In corporate travel, machine learning can be used to analyze travel data, predict trends, and optimize booking processes.   

Managed Travel

A strategic approach to overseeing and controlling corporate travel activities, often involving the use of travel management companies (TMCs) to implement policies, negotiate rates, and track expenses.

Marine Fares

Special airfare discounts offered to individuals working in the maritime industry, such as ship crew members and marine engineers, due to the unique nature of their travel schedules.

Marketing (Business Travel)

The promotion and sale of corporate travel services to businesses, including the development of marketing materials, participation in industry events, and building relationships with travel buyers.

Materiality

The significance of information that could reasonably influence the decisions of users of financial statements or other disclosures. In corporate travel, materiality can affect the disclosure of travel expenses and policies.

Media Fares

Discounted airfares offered to journalists and media professionals, often requiring proof of media credentials and potentially including baggage allowances for media equipment.

Metal

A colloquial term for the operating carrier of a flight, particularly in the context of codeshare agreements where the actual airline operating the flight may differ from the one shown on the ticket.

Minimum Connect Time

The shortest amount of time required between connecting flights to ensure a successful transfer.

Mobile Travel App

A smartphone application that allows travelers to book flights, hotels, and other travel services, manage itineraries, and access travel-related information on the go.

Multi-Carrier Support

The ability of a travel management system or platform to support bookings with multiple airlines, allowing for flexibility and potentially lower fares.

Multi-City Flight

A single itinerary that includes flights to and from multiple cities, often with connections or layovers.

Multi-Fare Class Support

The ability to book different cabin classes on a single itinerary, such as economy class on the outbound flight and business class on the return flight.

Business Travel Glossary - N

NDC

New Distribution Capability, a standard that enables airlines to distribute their products and services directly to travel sellers, offering more flexibility and personalization.

Negative Expense

A negative expense occurs when a previously incurred expense is reversed or reduced, resulting in a credit or income rather than a cost. This can happen due to various reasons, such as refunds, adjustments, or write-offs.

Net Fare or Net Rate

The net-fare or net rate is the base price of a travel service, excluding any additional fees, commissions, or markups. It represents the core cost of the service without any extra charges.

Net Promoter Score (NPS)

The Net Promoter Score (NPS) is a metric used to measure customer loyalty and satisfaction. It is calculated by asking customers how likely they are to recommend a product or service to others on a scale of 0 to 10. A high NPS indicates strong customer satisfaction and loyalty.

Next Generation Storefront (NGS)

A Next Generation Storefront (NGS) is a modern travel booking platform that offers enhanced features and functionality compared to traditional systems. NGS platforms often incorporate advanced technologies like artificial intelligence and machine learning to provide personalized recommendations, streamline the booking process, and offer a more intuitive user experience.

Non-Last Room Availability

Non-Last Room Availability (NLRA) refers to a hotel rate that is not guaranteed to be the lowest available rate. Unlike Last Room Availability (LRA), which ensures the lowest possible rate, NLRA may result in higher costs for travelers if they book their rooms without verifying the availability of a lower-priced option.

Non-Rev (Revenue) Passenger

A non-revenue passenger, often referred to as a ‘non-rev’, is an airline employee or their family who travels on a discounted or complimentary flight. These passengers do not pay for their tickets and often have priority boarding and seating.

Non-Transferable Ticket

A non-transferable ticket is a flight ticket that cannot be changed to another passenger's name. If the original passenger is unable to travel, the ticket may be forfeited or subject to change fees.

Nonstop Flight

A nonstop flight is a flight that travels directly from the origin to the destination without any intermediate stops. This means passengers can avoid the hassle of changing planes or waiting for connecting flights.

Business Travel Glossary - O

O&D

O&D stands for Origin and Destination. It refers to the specific starting and ending points of a journey, such as the cities or airports a traveler departs from and arrives at.

OBT

OBT is an abbreviation for Online Booking Tool. It refers to a web-based platform that allows employees to book their own travel arrangements, often within the guidelines of a company's travel policy. OBTs typically integrate with travel management systems and provide features like flight searches, hotel reservations, and expense tracking.

Occupancy Rate

Occupancy rate is the percentage of hotel rooms that are occupied during a specific period. It is a key metric used to measure the performance of a hotel, as higher occupancy rates generally indicate higher revenue and profitability.

Offline Connection

An offline connection refers to a travel itinerary that requires a change of planes at an intermediate airport. This means passengers will need to disembark from one flight and re-board another to reach their final destination.

Offsite

An offsite is a meeting or event held outside of a company's main office location. Offsites are often used for team-building activities, conferences, or retreats.

OLA

OLA is an abbreviation for Online Adoption. It refers to the rate at which employees adopt and use online travel booking tools. A high OLA indicates that employees are actively using the tools provided by the company to manage their travel arrangements.

One-Way Car Rental

A one-way car rental is a rental agreement where the car is picked up at one location and returned to a different location. This can be convenient for travelers who are not returning to their original starting point, but it may incur additional fees.

Online Travel Agency (OTA)

An Online Travel Agency (OTA) is a website or platform that allows travelers to book flights, hotels, and other travel services online. OTAs often offer a variety of options and competitive prices, making them a popular choice for travelers.

Open Booking

An open booking is a travel reservation that allows for flexibility in changing dates or destinations. This can be beneficial for travelers with uncertain plans or who need to make changes to their itinerary.

Open-Jaw Itinerary

An open-jaw itinerary is a travel itinerary where the return destination differs from the departure destination. This can be useful for travelers who want to explore different cities or regions on their trip.

Operating Expenses (OPEX)

Operating Expenses (OPEX) are the ongoing costs incurred by a business to operate day-to-day. These expenses can include salaries, rent, utilities, marketing, and other costs necessary for the business to function.

Optical Character Recognition (OCR)

Optical Character Recognition (OCR) is a technology that extracts text from images, such as receipts or documents. This can be helpful for automating data entry and expense reporting processes.

Business Travel Glossary - P

P-Card

A P-card, short for procurement card, is a corporate credit card issued to employees for business expenses. It provides a convenient and secure way to track and manage travel-related costs, often with features like expense reporting and spending limits.

Passenger Facility Charge (PFC)

A Passenger Facility Charge (PFC) is a fee imposed by airports to fund infrastructure improvements and maintenance. This fee is typically collected from passengers as part of their ticket price and is used to support projects such as runway construction, terminal renovations, and security upgrades.

Passenger Flying on a Direct Flight

A passenger flying on a direct flight travels directly from their origin airport to their destination airport without any intermediate stops. This means they can avoid the hassle of changing planes or waiting for connecting flights.

Passenger Name Record (PNR)

A Passenger Name Record (PNR) is a digital file stored by airlines that contains detailed information about a passenger's booking. It includes the passenger's name, itinerary, contact information, and other relevant details. PNRs are essential for managing bookings, tracking travel history, and providing customer service.

Per Diem

Per diem is a daily allowance provided to employees to cover travel expenses, such as meals, lodging, and incidental costs. It is often used to simplify expense reporting and reimbursement processes, as employees can claim a fixed amount per day rather than itemizing each expense.

Personal Business Expense

A personal business expense is an expense incurred for personal reasons, not related to business activities. These expenses are typically not eligible for reimbursement by the company. Examples of personal business expenses might include personal shopping, entertainment, or sightseeing.

Personal Effects Coverage

Personal effects coverage is an insurance option that provides coverage for personal belongings while traveling. It can help protect travelers against losses due to theft, damage, or other unforeseen events.

Personal Travel

Personal travel refers to travel undertaken for non-business purposes, such as leisure, vacation, or visiting friends and family. It is distinct from business travel, which is undertaken for work-related reasons.

Phonetic Alphabet

A phonetic alphabet is a standardized system for representing sounds in written form. It is often used to ensure accurate communication and pronunciation, especially when dealing with unfamiliar names or words.

Physical Corporate Card

A physical corporate card is a tangible credit card issued to employees for business expenses. It is a physical object that can be used for in-person transactions, unlike virtual cards. Physical corporate cards often have security features like chip technology and require a PIN for authorization.

Pitch

In the context of air travel, pitch refers to the distance between the back of one seat and the front of the next seat on an airplane. A wider pitch provides more legroom for passengers.

Point-to-Point

A point-to-point flight route travels directly between two cities without any intermediate stops. This means passengers can avoid the hassle of changing planes or waiting for connecting flights.

Points

Points are a type of loyalty program reward that travelers can earn by booking flights, hotels, or other travel services. These points can be redeemed for a variety of benefits, such as free flights, hotel stays, upgrades, or merchandise.

Policy Compliance

Policy compliance refers to the adherence to established rules, regulations, and guidelines within a company. In the context of corporate travel, it ensures that employees follow the company's travel policies and procedures, which can help reduce costs, improve efficiency, and mitigate risks.

PPQ Tender

A PPQ tender is a process used to request quotations from suppliers for goods or services. It involves sending out a request for proposals (RFP) to potential suppliers and evaluating their bids to select the best option.

Preferred Supplier

A preferred supplier is a supplier with whom a company has a preferred relationship. These suppliers may offer discounted rates, better terms, or additional benefits to the company.

Premium Location Charge (PLC)

A premium location charge (PLC) is an additional fee that car rental companies may charge for renting a car at a convenient location, such as an airport or popular tourist destination.

Prepaid Expenses

Prepaid expenses are expenses that are paid for in advance before the goods or services are received. This can include prepaid hotel stays, flight tickets, or other travel-related expenses.

Pro Forma Invoice

A pro forma invoice is a preliminary invoice that is sent to a buyer before goods or services are delivered. It serves as a preview of the final invoice and helps to ensure that both parties agree on the terms and conditions of the transaction.

Procurement

Procurement is the process of acquiring goods and services for a company. It involves identifying needs, sourcing suppliers, negotiating contracts, and managing the purchasing process.

Pseudo City Code (PCC)

A pseudo city code (PCC) is a unique identifier assigned to travel agencies and other entities that use a global distribution system (GDS). It allows the GDS to track and manage transactions associated with a specific agency or user.

Published Fare

The published fare is the standard, publicly available price for a flight ticket set by an airline. It is the base price before any discounts, promotions, or additional fees are applied. Passengers can typically find the published fare listed on the airline's website or through travel agents.

Purchase Order

A purchase order is an official document issued by a buyer to a seller, authorizing the purchase of goods or services at specified prices and terms. It serves as a legal agreement between the two parties and is used to track and manage purchases within a company.

Business Travel Glossary - R

RAC

A RAC, or Rate Access Code, is a unique code used to access negotiated travel rates. It allows travelers to book hotels at discounted rates that have been pre-arranged by their company. This can help to save money on accommodations.

Rack Rate

The rack rate is the standard, published price for a hotel room before any discounts or promotions are applied. It is the highest price that a hotel would charge for a room, and it is typically only offered to individuals who are not eligible for corporate rates or other discounts.

Real-Time Reporting

Real-time reporting refers to the immediate provision of data and analysis. This means that information is updated and available as it happens, allowing for timely decision-making and problem-solving.

Reconciliation

Reconciliation is the process of comparing and verifying financial records to ensure accuracy and consistency. It involves matching transactions, balances, and other financial data to identify any discrepancies or errors.

Record Locator

A record locator is a reference number or code that is assigned to a travel booking. It is used to access and manage the booking, and it is essential for troubleshooting any issues that may arise.

Recurring Expense

A recurring expense is a predictable expense that occurs on a regular basis, such as monthly subscription fees, annual insurance premiums, or regular travel costs.

Red-Eye Flight

A red-eye flight is a late-night flight that departs after 9 p.m. and arrives early in the morning. These flights can be a convenient option for travelers who need to arrive at their destination early in the morning.

Regional Hotel Chain

A regional hotel chain is a group of hotels that operates in a specific geographic region. These chains may offer discounted rates and amenities to corporate travelers who book through their network.

Return on Investment (ROI)

Return on Investment (ROI) is a measure of the profitability of an investment. It is calculated by dividing the net profit of an investment by the initial cost of the investment. ROI is a valuable tool for evaluating the effectiveness of corporate travel programs and other business initiatives.   

Revenue Management

Revenue management is the practice of setting prices and managing inventory to maximize revenue. In the context of corporate travel, revenue management is used to optimize pricing for flights, hotels, and other travel services.

Business Travel Glossary - S

SAF

Sustainable Aviation Fuel, a more environmentally friendly alternative to traditional jet fuel made from renewable resources. SAF reduces carbon emissions and can be used in existing aircraft engines.

Segment

A portion of an air itinerary, including one takeoff and one landing. A multi-city trip may have multiple segments.

Shoulder Season

The period between peak and off-peak travel seasons, often offering lower prices and fewer crowds.

SITI, SITO, SOTI, SOTO Tickets

Acronyms representing different scenarios in airline ticket sales, where "S" stands for "Sold" (inside or outside the country) and "T" stands for "Ticketed" (inside or outside the country). These codes indicate the origin and issuance of the ticket.

Smart Card

A physical card with an embedded computer chip that stores and processes data, providing enhanced security and functionality compared to traditional magnetic stripe cards.

Snap Codes

Airline contract codes used to identify specific fare types and rules.

Spend Control

The processes and policies used to monitor and manage spending within a company, including travel expenses.

Spend Cube

A multi-dimensional data structure that provides a comprehensive view of a company's spending across various categories, suppliers, and business units.

Spend Forecasting

The process of predicting future expenses based on historical data and trends.

Spend Management

The strategic approach to controlling, analyzing, and optimizing a company's expenditures.

Split Ticketing

Purchasing separate tickets for different portions of a journey, potentially resulting in lower fares but also increased risk if there are missed connections.

SSO

Single Sign-On, a system that allows users to log in to multiple applications with a single set of credentials.

Stopover

A planned break in a journey, typically lasting longer than a layover, to explore a connecting city.

Stopover Paid by Carrier

A program offered by some airlines that covers hotel, transportation, and meals during a stopover.

Subscription-Based Expense

An ongoing expense for a product or service accessed on a recurring basis.

Sundry Expenses

Miscellaneous, small expenses that don't fit into specific budget categories.

Sustainability

The practice of meeting current needs without compromising future generations' ability to meet theirs.

Business Travel Glossary - T

T&E

Travel and Expense, referring to the financial category for business travel expenses.

The Advance Purchase Policy

A company policy specifying the minimum number of days required to book travel.

The Fair Market Price

The optimal price for a hotel room or airfare based on current conditions.

The International Airline Travel Agent Network (IATAN)

An organization that provides accreditation and support for travel agents.

The Lowest Logical Fare (LLF)

The least expensive, non-refundable fare with the minimum number of stops.

The Minimum Connect Time

The shortest time required to successfully transfer to a connecting flight.

The Next Generation Storefront (NGS)

A modern travel booking platform with enhanced features and functionality.

The Occupancy Rate

The percentage of hotel rooms that are occupied.

The Phonetic Alphabet

A standardized system for representing sounds in written form.

The Transportation Security Administration (TSA)

A U.S. government agency responsible for airport security.

The Universal Air Travel Plan (UATP)

A global payment system for corporate travel expenses.

Through Passenger

A passenger who remains on the plane at a connecting stop.

Ticket Deposit Receipt (TDR)

A preliminary proof of payment for future travel expenses.

Ticketing Agreement

An arrangement between airlines allowing the sale of tickets for connecting flights.

TMC

Travel Management Company, a business that provides travel services and management.

TNC

Transportation Network Company, a platform that connects passengers with drivers (e.g., Uber, Lyft).

Transportation Security Administration (TSA)

The Transportation Security Administration (TSA) is a U.S. government agency responsible for ensuring the security of transportation systems, primarily focusing on aviation. They implement screening procedures and security measures to protect travelers and infrastructure from potential threats.   

Travel Agency

A travel agency is a business that provides services and assistance related to travel, such as booking flights, hotels, and other travel arrangements. They often offer expertise and guidance to help travelers plan and organize their trips.

Travel Agent

A travel agent is a professional who works for a travel agency or independently to assist individuals and organizations with their travel needs. They can provide personalized advice, research destinations, negotiate rates, and handle all aspects of travel planning.

Travel Disruption

Travel disruption refers to any event or series of events that negatively impacts a traveler's itinerary or plans. This can include flight cancellations, delays, lost luggage, or other unforeseen circumstances.

Travel Expense Management (TEM)

Travel Expense Management (TEM) is the systematic oversight and control of business-related travel expenditures. It involves planning, tracking, reporting, and reimbursing expenses incurred by employees during business trips.

Travel Expenses

Travel expenses are goods or services that employees incur while traveling for business. These expenses can include transportation, accommodations, meals, and other costs related to the business trip.

Travel Insurance

Travel insurance provides financial protection against unexpected events that may occur while traveling, such as medical emergencies, trip cancellations, lost luggage, or flight accidents.

Travel Management Company (TMC)

A Travel Management Company (TMC) is a specialized business that helps organizations manage their corporate travel programs. TMCs offer services like booking travel, negotiating rates, ensuring compliance with travel policies, and tracking expenses.

Travel Management Software or Travel Management System

Travel management software or a travel management system is a technology solution designed to help organizations efficiently manage their corporate travel processes. These systems can streamline booking, expense tracking, itinerary management, and reporting, improving efficiency and cost-effectiveness.

Travel Manager

A travel manager is a professional responsible for overseeing and managing travel-related activities within an organization. They coordinate bookings, negotiate with travel suppliers, ensure compliance with travel policies, and optimize travel expenses to enhance efficiency and cost-effectiveness.

Travel Policy

A travel policy is a set of guidelines and rules established by an organization to govern employee business travel. It outlines permissible expenses, booking procedures, and other standards to ensure consistency and compliance with company objectives.

Travel Program

A travel program encompasses the policies, procedures, and guidelines established by an organization to regulate and optimize travel-related activities. A managed travel program involves centralized control and coordination, while an unmanaged travel program may be less organized and less satisfactory.

Travel Risk Management

Travel risk management involves the systematic identification, assessment, and mitigation of potential risks associated with business travel, such as security threats, health hazards, or legal issues.

Travel Services

Travel services encompass a wide range of travel-related offerings, including transportation (flights, trains, buses), accommodation (hotels, resorts), car rentals, tour packages, travel insurance, and other amenities.

TSA PreCheck

TSA PreCheck is a program offered by the Transportation Security Administration (TSA) in the United States that provides expedited airport security screening for pre-approved travelers.

Business Travel Glossary - U

U.S. Customs and Border Protection (CBP)

U.S. Customs and Border Protection (CBP) is a federal law enforcement agency responsible for safeguarding America's borders and enforcing customs, immigration, and trade laws.

Ultra-Low-Cost Carrier (ULCC)

An ultra-low-cost carrier (ULCC) is an airline that offers extremely low fares by eliminating or minimizing many traditional airline services, such as assigned seating, checked baggage, and in-flight meals.

Understanding Travel Disruption

Understanding travel disruption involves being aware of potential risks and having contingency plans in place to mitigate their impact. This includes staying informed about weather conditions, political instability, and other factors that could disrupt travel.

Universal Air Travel Plan (UATP)

The Universal Air Travel Plan (UATP) is a global payment system specifically designed for the airline industry. It allows businesses to issue and manage charge cards for corporate travel expenses and facilitates the centralized payment of airfare and related services.

Unmanaged Travel

Unmanaged travel refers to a situation where individuals within an organization make independent and decentralized decisions regarding their business-related travel, without a centralized or coordinated approach from the organization. This can lead to inconsistencies, higher costs, and reduced compliance.

Unrestricted Fare

An unrestricted fare is a flight ticket that offers flexibility in terms of changes and cancellations, allowing passengers to modify their travel plans without incurring significant fees or penalties.

Unused Ticket

An unused ticket is a flight ticket that was not used for travel and may be subject to cancellation fees or airline policies regarding refunds or credits.

Business Travel Glossary - V

Value-Added Tax (VAT)

Value-Added Tax (VAT) is a consumption tax levied at each stage of the production and distribution chain. It is ultimately borne by the end consumer and is calculated as the difference between the value of goods or services sold and the cost of materials and services used in their production.

Vendor Management

Vendor management is the process of overseeing and optimizing relationships and interactions with external suppliers to ensure effective procurement and enhanced business performance.

Virtual Card

A virtual card is a digital payment card that exists solely online, providing a secure and temporary credit or debit card number for transactions.

Virtual Card Number (VCN)

A virtual card number (VCN) is a highly secure, single-use virtual credit card number used to minimize the risk of fraud.

Virtual Corporate Card

A virtual corporate card is a unique 16-digit corporate card number generated digitally. It can be used for online checkouts and downloaded to a mobile wallet for in-person purchases.

Business Travel Glossary - W

Workcation

A workcation is a combination of work and vacation, where employees conduct business from a remote location while also enjoying leisure activities.

Working Capital

Working capital is the operational liquidity available to a business, calculated as current assets minus current liabilities. It represents the funds a company has available to meet its short-term obligations and support day-to-day operations.

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